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Subsidies and Protests

Taking with one hand and giving with the other? When President Olusegun Obasanjo kept his election pledge to remove fuel subsidies, the country rose in uproar and subsidies were subsequently reinstated, but at a lower level. But not all, including the IMF and Western donors, were pleased with the move. (Oil And Gas) Neil Ford.
African Business Oct 2003 i291 p40(2) (1523 words)

1. What is the basic logic behind fuel subsidies?




2. Why do governments use fuel subsidies?




3. How do fuel subsidies in Nigeria disproportionately help wealthier Nigerians?




4. What happened when President Obasanjo abolished the fuel subsidies?




5. Does this show a responsive government? Why or why not?